astd how to sell t&d in latin american countries
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HOW TO SELL T&D IN LATIN AMERICAN COUNTRIES
Session Number: SU414
Speakers:
Vilhena, João – [email protected]
Costacurta, Luiz – [email protected]
Web: www.institutomvc.com.br
Learning Objectives:
Develop a business plan guided by a model of identification of opportunities in Latin American markets;
Increase your success in marketing T&D products in Latin American countries.
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SPEAKER’S PROFILE JOÃO BAPTISTA VILHENA – V P of the
Instituto MVC, a Brazilian consulting company. Twenty three years of professional experience in the areas of Management, Marketing, Negotiation, Sales & Distribution. Author of 5 books. Speaker of ASTD Ibero American Forum. [email protected]
LUIZ AUGUSTO COSTACURTA JUNQUEIRA – V P of the Instituto MVC, a Brazilian consulting company. A Management Education Consultant with twenty nine years of experience. The Brazilian pioneer in Management Negotiation . Author of 8 [email protected] 2
HOW TO SELL T&D IN LATIN AMERICAN COUNTRIES
Developing countries constitute an important market.
Latin America offers excellent business opportunities for the training and development industry.
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The biggest challenge to anyone who wishes to conduct business in LA is to understand the needs and cultural diversities of these countries.
Let’s see how much you know about the culture and habits of important countries in LA (Brazil, Argentina, Chile, Uruguay).
THE BIGGEST CHALLENGE
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Feijoada Barbecue Wine Has the smallest population Speeks portuguese Salmon Tango Cattle Capital is Buenos Aires Capital is Montevideo
Biggest GDP in Latin America Capital is Santiago Higher Educational Level Very influenced by American Culture Exports goods, not services Capital is Brasília Football idol is Maradona Agricultural economy Exports goods & services Gambling in Punta del Leste
WHO’S WHO?
WHAT DO YOU KNOW ABOUT
Brazil Argentina Chile Uruguay
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WHAT DO YOU KNOW ABOUT
Brazil Argentina Chile UruguayFeijoada Barbecue Wine Has the smallest
population
Speeks portuguese Tango Salmon Cattle
Biggest GDP in Latin America
Higher Educational Level
Very influenced by American Culture
Gambling in Punta del Leste
Capital is Brasília Capital is Buenos Aires
Capital is Santiago Capital is Montevideu
Exports goods & services
Football idol is Maradona
Exports goods, not services
Agricultural economy
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ARGENTINA, BRAZIL, CHILE AND URUGUAY
Countries Argentina Brazil Chile UruguayGeographic
Area2.780.092
Km²8.514.205
Km²756.626
Km²176.215
Km²
Population(2006)
39,1 Million 189,9 Million 16,5 Million 3,5 Million
Currency: Rate
(March / 2007)US$ 1: 3,12 US$ 1: 2,06 US$ 1: 538,00 US$ 1: 24,20
GDP(2004)
US$ 153 billion
US$ 604 billion 94,1 billion US$ 13,2
billion
Work Force(2004)
17,9 million 89,9 million 6,4 million 1,7 million
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HOW NEGOTIATIONS WORK IN LATIN AMERICA
1. Pace of Negotiation Slow
2. Negotiation Strategies
Opening Offers vis-à-visSettlement
Moderate initial demands
Presentation of Issues One at a time
Presentations Informal
Dealing With Differences Argumentative, whether right or wrong; passionate
Concessions Slow
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HOW NEGOTIATIONS WORK IN LATIN AMERICA
3. Emphasis on Personal Relationships High
4. Emotional Aspects
Sensitivity Valued
Emotional degree Passionate
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HOW NEGOTIATIONS WORK IN LATIN AMERICA
5. Decision Making
Overall Method Impulsive, spontaneous
Emphasize Concepts
Emphasis on Group / Team Low: Decisions from top person
Emphasis on Face-Saving Extreme
Influence of Special Interests on Decision Maker(s)
Expected, condoned
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HOW NEGOTIATIONS WORK IN LATIN AMERICA
6. Contractual and Administrative Factors
Need for Agent(s) Average
Degree of Contract Specificity Moderate
Degree of Paperwork / Bureaucracy Moderate
Need for Agenda (s) Low
Acuff, Frank L., Ed. Amacon, 2nd Ed, New York: Amacon.
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STATEMENTS
PAUL DINSMOREBrazilian ConsultantDINSMORE CONSULTING
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One of the biggest mistakes you make when dealing in LA is to offer products that have been successful in the United States, Europe, or Asia.
To achieve success it is necessary to adjust the offer to the specific needs of each country.
BIGGEST MISTAKES
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SALES FIRST RULE
You must know the market.
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ARGENTINAGreet individually each person present, not the group as a whole.
Argentineans appreciate compliments about their children and the food and like to talk of the beauty of local parks and gardens.
Maintain eye contact during conversation as you would in the United States.
Avoid comparisons with the United States. Argentineans are proud and often view Brazilians, Americans and other people as uncultured.
Nurture the relationship with your counterpart. Argentineans are very social and friendship plays a key role in the negotiating process.
Vegetarians have a hard time there. Argentineans lead the world in per capita beef consumption.
Argentineans are proud, educated, sophisticated and strongly identify themselves with European traditions. Many believe that Buenos Aires is the cultural counterpart of Paris.
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BRAZILWhen greeting, good friends often embrace. Women usually kiss each other on the cheeks.
Try to get comfortable with physical distance in Brazil than in the United States. It may be that your counterpart is only a foot far from you if you are talking standing up.
Don’t refer to Brazilians as Latin or South Americans Brazilians consider themselves independent from (the) rest of South America. Avoid talking about Argentina.
Avoid using the American okay sign, with the thumb and index finger forming a circle. It is considered a very obscene gesture in Brazil.
Negotiators generally move at a faster pace in São Paulo than in Rio.
Don’t make the mistake of assuming as anger the passion with which Brazilians may argue their points.
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CHILEChileans appreciate compliments about their children and the food, and like to talk about the beauty of local parks and gardens.
Although your counterpart may speak English, give serious consideration to learning Spanish. Chileans are very proud, and any effort to learn Spanish at a minimum, or even a few phrases will be appreciated.
Maintain eye contact during conversation as you would in the United States.
Nurture the relationship with your counterpart. Chileans are very social, and friendship plays a key role in the negotiating process.
Don’t make the mistake of assuming as anger the passion with which Chileans may argue their points.
There is less machismo in Chile than in Mexico. Chilean women often hold professional jobs in education, medicine, and journalism and are sometimes owners of small business. Chilean women are slowly starting to attain managerial positions.
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URUGUAYMake prior appointments and be punctual, though your counterpart may arrive up to thirty minutes late without being inappropriate. Avoid any behavior that might be construed as a personal criticism of your counterpart.
Avoid discussing politics or religion.
Engage in general conversation before getting down to business.
There is less machismo in Uruguay than in Mexico. Uruguayan women often hold professional jobs in education, medicine, and journalism and are sometimes owners of small business. Uruguayan women are slowly starting to attain managerial positions.
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SALES SECOND RULE
You must know the people.
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What Americans Think of Brazil
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39% think that Brazilians speak Spanish
23% believe that Buenos Aires is the capital of Brazil
They believe that today’s economic situation in Brazil is better than 10 years ago
Brazil is an important commercial partner and it has one of the best investment rate
It has a modern industry
They believe that Brazil is on the right path
And they say American companies should trust their investments to Brazil
IDB Research
WHAT AMERICANS THINK OF BRAZIL
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Vices Virtues
Work is punishment Theories don’t hold true in
practice Paternalism Like to get an advantage in
everything Short-term vision Fear of conflicts Personal relationships are
more important than professional
Happiness Flexibility Solidarity Easily motivated Creativity Hope in the future Clear past Friendly, receptive Continue mobilizing
OUR PEOPLE HAVE THEIR OWNANTHROPOLOGY
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SALES THIRD RULE
You must adapt your negotiation model to the LA standards.
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BUSINESS ORIENTATIONS
North American Latin American
Long Term Positive Conflict Idea Conflicts Priority to Diversity Human Tech Research Education is Work Motivated by values Meritocracy More Inflexibility Creativity Mind
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“Shorter” Long Term Afraid of Conflicts Personal Conflicts Low Priority to Diversity Human Touch Intuition Education is not Work Motivated by (selfishness) Paternalism More High Creativity Heart
SALES FOURTH RULE
You must have a check list before travelling:Try to build up a benchmark
Establish social relationships prior to any business endeavor
You must know who is the top decision maker
Offer something that effectively meets what your client is needing
Try to exhibit a trustworthy generating behavior
Be sure to be in condition to deliver whatever you sold within the agreed lead time
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STATEMENTS
MONICA DELGADO International ExecutiveABN AMRO BANK
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If you want to get rich fast – try (to) play soccer
If you want know a handsome man or a nice woman – go to Brazil
If you want to dance - go to Buenos Aires and dance the tango
If you want a very good wine – go to Chile
If you like millionaires – go to Punta del Leste
And if you want to earn money, come to LA and sell T&D.
LAST TIPS
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ADDITIONAL DATA Emails:
[email protected] [email protected]
Websites: www.institutomvc.com.br www.worldbank.org www.brazilcham.com www.infoplease.com
Bibliography: Acuff, Frank L., Ed. Amacon, 2nd Ed, New York: Amacon (also available in Chinese and Portuguese).
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See you in BRAZIL
THANK YOU
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